French transport giant launches multi-billion energy transition fund

French transport giant CMA CGM is creating a five-year investment fund aimed at accelerating its energy transition in shipping and logistics.

The EUR 1.5 billion euros ($1.5 billion) fund will support industrial production of new fuels and low-emission transport solutions across the group’s businesses, including maritime, overland and air freight shipping and port and logistics services, it said in a statement.

Among other initiatives, the group will develop a biomethane production and liquefaction project to produce up to 100,000 tonnes by 2025, with the possibility of doubling output by 2027, it said.

CMA CGM also referred to a joint plan announced in June to partner energy group Engie in the production of 11,000 tonnes per year of biomethane in France starting in 2026.  

CMA CGM, privately controlled by the Saade family, on Friday reported second-quarter net profit more than doubled to $7.6 billion, also surpassing the first quarter.

Its profits prompted the French government to call on the company this year to help to cushion inflationary pressures. CMA CGM responded with shipping rate discounts for cargoes to France.

The news comes after France’s minister for energy transition said over the weekend that French electricity giant EDF has committed to restart all its nuclear reactors by this winter to help the country through the broad energy crisis aggravated by the war in Ukraine. Agnès Pannier-Runacher said the government is taking steps to “avoid restrictive measures” over energy use in the peak winter cold season, following a special government meeting over energy issues.

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